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Dabur India released its Q2FY27 update

ICICIdirect Research 07 Oct 2026 DISCLAIMER

News: Dabur India released its Q2FY27 update, with consolidated revenue growth in double digits for the second consecutive quarter. India business reported double-digit growth with HPC reporting double digit growth driven by high-teens growth in Hair Oils & Shampoos and double-digit growth in skin care. Healthcare is expected to report mid-single digit growth, however, health supplements were impacted due to changes in packaging and labels across the portfolio. Foods continued double-digit growth and Beverages reported early teens growth. International business is expected to sustain high-teens growth, despite headwinds in the Middle East. E-commerce and quick commerce continued to report strong growth. Modern trade continues to report double digit growth, with rural outpacing urban in general Trade. EBITDA margins were impacted by input cost inflation particularly in HPC and OTC & ethicals, though the company has taken price hikes and cost-saving measures. PAT is expected to report double digit growth.

View: Dabur is witnessing sequential improvement in revenue growth, with consolidated revenue growth increasing from 5.4% in Q2FY26 to 10.6% in Q1FY27 and double-digit growth expected in Q2FY27. India FMCG growth has also improved from 5.7% in Q2FY26 to 9.5% in Q1FY27 and is expected to reach double digits in Q2FY27. International business has seen a strong recovery, with growth improving from 2.5% in Q4FY26 to 15.5% in Q1FY27 and high-teens growth expected in Q2FY27, despite headwinds in the Middle East. Management targets double-digit consolidated revenue growth in FY27, with growth expected to be primarily price-led as inflationary pressures are likely to keep volume growth relatively subdued. Given that ~80–85% of Dabur’s domestic business revenue comes from HPC and Healthcare, elevated input cost inflation in these segments remains a key monitorable and could weigh on margins.

Impact: Neutral

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